Balfour bids for Network Rail contract

CONTRACTOR Balfour Beatty, stripped of £120m of work when Network Rail took track maintenance in-house last year, has high hopes of a big rail replacement contract within weeks.

The company, which faces corporate manslaughter charges over the Hatfield rail disaster, said the Network Rail deal could be worth as much as £100m a year.

Balfour and fellow maintenance contractors Carillion and Amec are battling to win compensation from Network Rail. Chief executive Mike Welton said he hoped for a resolution in months.

Balfour's part in the Metronet Underground consortium will involve £1.2bn of track and station work in the next seven years.

The order book was up 14% on the prior year at £5.8bn. Pre-tax profits in the year to 31 December were £118m against £88m a year earlier on sales of £3.16bn against £3.1bn. Total dividend is up to 6p from 5.4p.

Carillion makes £33m provision

CONSTRUCTION services giant Carillion has made a total goodwill provision of £33.1m as a result of Network Rail's 'complete surprise' decision in October to bring all its maintenance contracts in-house by September this year.

The company confirmed the decision would hit operating profits by £7m this year and £8m next.

Pre-tax, pre-exceptional profits rose to £50.8m from £50.2m. The total dividend is 6.75p, up from 4.9p, and includes a 1.7p special dividend.